Audit Committee

An audit committee is a committee of board members to whom the board has delegated the responsibility of supervising accounting practices, financial reporting, engagement of external auditors, risk management policies, and regulatory compliance. U.S. companies are required to have an audit committee as a precondition to being listed on a stock exchange. Audit committee members are drawn from the Board of Directors and for public companies, at least one must have financial experience and expertise (but ideally all members would have this kind of expertise).